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"Ratios & Harmonics: a Different Way to Trade." Summary 37 replies

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Ratios & Harmonics: a Different Way to Trade

  • #12,201
  • Jan 22, 2015 3:15pm Jan 22, 2015 3:15pm
Quoting Mr. Pip
{quote} Thanks for the comments and for posting. This is what I'm talking about this is very helpful to me because I can see your strength and weaknesses. Your trade is not a bad one but the order flow is not bearish. Price broke structure to the upside and was unable to produce a NSH instead a HL was formed your point C and then a NSH to complete point D. This trade may work out but you are against order flow and don't give it too much room if it goes against you. If you need a chart on this let me know and I or someone else will be glad to help....
Thank you Mr. Pip for your feedback and if I may a few questions to assist me in understanding the material.

1) Did the order flow turn bullish once price broke the structure at point A?
2) As per my chart example should the AB leg commence from a newly formed structure?
3 The structure formed at point D could have been a barrier for price if the price broke above this structure? Would it have been better if at point D we were to have a swing high?

If you have some time a chart example would be welcomed so that I can add it to my notebook.
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  • #12,202
  • Jan 22, 2015 3:16pm Jan 22, 2015 3:16pm
Quoting Mr. Pip
{quote} Congrats!
Thank you Sir !!
  • #12,203
  • Jan 22, 2015 3:34pm Jan 22, 2015 3:34pm
Quoting Mr_Burns
Hi Mr. Pip and fellow traders, First Im sorry I haven't posted my trades but I found it stressful to post an analysis as I took my trade. I will post my trades in the future with a short explanation on long term and short term order flow and PA (structure and expectation will be seen in my charts). Aside from that I've been struggling this week but not so much with reading the chart but more so with emotional trading. From what I've learned from Mr. Pip rules are the way to combat emotions and I have the rules but still found myself second guessing...
Nice trade, they don't all work out. Shake it off. It was a good read!
If you fail to plan, you plan to fail.
  • #12,204
  • Jan 22, 2015 3:45pm Jan 22, 2015 3:45pm
Quoting Mr. Pip
{quote} It does not a 1:1 or ABCD has not set ration PRZ you need to see where it completes and find the confluence in the area to strengthen your case.
Hello Mr. Pip and thank you,

Just to clarify the chart example I posted was not a valid ABCD?
My understanding for a valid ABCD point C must reach a min of the 61 Fib level and not surpass (close) beyond the 78.6/ Point D must reach a minimum of the 127 AB Fib extension and not closing above the 161.

Here is the same chart example as earlier with price overshooting the 161 Fib extension of the AB Leg.

I'm sorry for what may seem basic questions I just want to make sure I'm understanding the material.

Respectfully and with thanks,
Mikali
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  • #12,205
  • Jan 22, 2015 4:20pm Jan 22, 2015 4:20pm
Hi Mr Pip, sorry for not posting, but i find it difficult to post and trade at the same time. The irony is, what i like most about this way of trading is it takes all of my concentration, i've moved down to a 3min chart and with each new candle giving new information to be assessed, sometimes my brain feels like its gonna explode lol,
hopefully when i become more experienced and things come more naturally i will be able to post a basic chart in real time, rather than end of day.

Well, despite all my concentration this was another really tough losing week, (still not back on live account tho)
W = 5
BE = 3
L = 8

win ratio = 31%
Av. winner = 17.6p
Av. loser = 15.4p

Despite having only 2 of 16 trades reach TP, losses were kept to minimum thanks to trade management, i lost -35p for the week, with maximum total risk of 304p across all 16 trades, so it could have been a lot worse.

Anyway, here's a chart example from earlier where i managed to exit with a small profit.

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  • #12,206
  • Jan 22, 2015 4:31pm Jan 22, 2015 4:31pm
Quoting Mr_Burns
Hi Mr. Pip and fellow traders, First Im sorry I haven't posted my trades but I found it stressful to post an analysis as I took my trade. I will post my trades in the future with a short explanation on long term and short term order flow and PA (structure and expectation will be seen in my charts). Aside from that I've been struggling this week but not so much with reading the chart but more so with emotional trading. From what I've learned from Mr. Pip rules are the way to combat emotions and I have the rules but still found myself second guessing...
Hey mr burns, if its any consolation, when i looked at your chart it was like de ja vu, i've been trading those exact setups all week and getting slaughtered, in retrospect the only thing i can see is that we wre not trading with long term ordeflow, so with agressive trades the win rate may be lower, altho i'm really not sure.
Anyways, best of luck for next weeks trading.
  • #12,207
  • Edited 5:17pm Jan 22, 2015 4:41pm | Edited 5:17pm
Quoting Mikali
{quote} Hello Mr. Pip and thank you, Just to clarify the chart example I posted was not a valid ABCD? My understanding for a valid ABCD point C must reach a min of the 61 Fib level and not surpass (close) beyond the 78.6/ Point D must reach a minimum of the 127 AB Fib extension and not closing above the 161. Here is the same chart example as earlier with price overshooting the 161 Fib extension of the AB Leg. I'm sorry for what may seem basic questions I just want to make sure I'm understanding the material. Respectfully and with thanks, Mikali...
Hello Mikali,

I'm not sure if my observations will help or confuse... so please feel free to disregard everything!

Basically, don't lose sight of where price is in the bigger scheme of things.

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  • #12,208
  • Jan 22, 2015 5:43pm Jan 22, 2015 5:43pm
Quoting Mikali
{quote} Thank you Mr. Pip for your feedback and if I may a few questions to assist me in understanding the material. 1) Did the order flow turn bullish once price broke the structure at point A? 2) As per my chart example should the AB leg commence from a newly formed structure? 3 The structure formed at point D could have been a barrier for price if the price broke above this structure? Would it have been better if at point D we were to have a swing high? If you have some time a chart example would be welcomed so that I can add it to my notebook....
My chart should be clear enough but if I need to explain something further let me know.
Attached Image (click to enlarge)
Click to Enlarge Name: $EURUSD (1 Min) 1_22_2015.jpg Size: 128 KB
If you fail to plan, you plan to fail.
  • #12,209
  • Jan 22, 2015 5:46pm Jan 22, 2015 5:46pm
Quoting Mikali
{quote} Hello Mr. Pip and thank you, Just to clarify the chart example I posted was not a valid ABCD? My understanding for a valid ABCD point C must reach a min of the 61 Fib level and not surpass (close) beyond the 78.6/ Point D must reach a minimum of the 127 AB Fib extension and not closing above the 161. Here is the same chart example as earlier with price overshooting the 161 Fib extension of the AB Leg. I'm sorry for what may seem basic questions I just want to make sure I'm understanding the material. Respectfully and with thanks, Mikali...
It happens it's not foolproof but the order flow did suggest a strengthening bull market.
If you fail to plan, you plan to fail.
  • #12,210
  • Jan 22, 2015 5:48pm Jan 22, 2015 5:48pm
Quoting Wolves77
Hi Mr Pip, sorry for not posting, but i find it difficult to post and trade at the same time. The irony is, what i like most about this way of trading is it takes all of my concentration, i've moved down to a 3min chart and with each new candle giving new information to be assessed, sometimes my brain feels like its gonna explode lol, hopefully when i become more experienced and things come more naturally i will be able to post a basic chart in real time, rather than end of day. Well, despite all my concentration this was another really tough losing...
Keep at it, this week was a tough trading week lots of crazy price action.
If you fail to plan, you plan to fail.
  • #12,211
  • Jan 22, 2015 5:48pm Jan 22, 2015 5:48pm
Quoting honestknave
{quote} Hello Mikali, I'm not sure if my observations will help or confuse... so please feel free to disregard everything! Basically, don't lose sight of where price is in the bigger scheme of things. {image}
If you fail to plan, you plan to fail.
  • #12,212
  • Jan 22, 2015 5:51pm Jan 22, 2015 5:51pm
This is the kind of interaction I'm speaking about it doesn't have to be live but thank you and well done! this is our house not my house a place for all of us to post, learn, teach, vent or whatever.
If you fail to plan, you plan to fail.
  • #12,213
  • Jan 22, 2015 6:59pm Jan 22, 2015 6:59pm
Today, no, I could, operate, Therefore I take this time, a counter trend trade in 1H have a PRZ, 88% x 127x138.
Wherefore, I waited to 5M, a bearish candle pattern to go to confluence of MS and mS.
Quickly reaches the tp. + 24pips. regards
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  • #12,214
  • Jan 22, 2015 7:36pm Jan 22, 2015 7:36pm
Quoting Mr. Pip
{quote} My chart should be clear enough but if I need to explain something further let me know. {image}
Thank you Mr Pip for your posting. In your chart, you expected price to have deep correction after the structure break. May I know how you come to that expectation?
  • #12,215
  • Jan 22, 2015 7:39pm Jan 22, 2015 7:39pm
Quoting honestknave
{quote} Hello Mikali, I'm not sure if my observations will help or confuse... so please feel free to disregard everything! Basically, don't lose sight of where price is in the bigger scheme of things. {image}
Honesknavet: My Two Cents, we should expect a clear setup, in this case, the swing upward, breaking the last bearish pivot, and then makes a 1to1, ab = cd, traders, after this take profits, and generally, we have a pullback, 38% and 61%, then return to the main trend, to an area of clear MR. There, in that area of MR, evaluate, strength and weakness, we analyze the strength of the resistance, a single pivot, area closures and overlapping openings, etc.
And we evaluate the strength of the trend, there comes the projection and deep.
In those areas of decision, the price usually takes a complete pullback, ie not bounce or break, this greater resistance, just like that. By mmtum, bearing, makes a correction zigzag, abc and a D, D is accelerated if this is likely to break the resistance, but if this D is weak, delayed, a HH makes retesteo and fails, an FR, and there in that weakness walked down.
Reference to the pivot, which makes a support, for my newly operation in the same pair, was a multiple pivot area overlooking an overlay, MS and mS. Is an area of strong support to go out and look, if I return to go short.
Greetings, and all continue to learn, Mr Pip.
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  • #12,216
  • Jan 22, 2015 7:55pm Jan 22, 2015 7:55pm
Quoting gristar
{quote} Thank you Mr Pip for your posting. In your chart, you expected price to have deep correction after the structure break. May I know how you come to that expectation?
The break in structure produced a very weak NSL with minimal projection. The expectation is a deep correction.
If you fail to plan, you plan to fail.
  • #12,217
  • Jan 22, 2015 8:06pm Jan 22, 2015 8:06pm
Just missed this entry. Going to wait on an opportunity to enter. The initial drive down started out with some good momentum so my expectation is a shallow correction to the green horizontal line. Then look for an opportunity to enter!
Attached Image (click to enlarge)
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Damn The Torpedoes, Full Speed Ahead!
  • #12,218
  • Jan 22, 2015 8:21pm Jan 22, 2015 8:21pm
Mr. Pip, question! Since I started using Ninja Trader with an FXCM Demo account, I have noticed that if I switch from one chart to another, then back to the first, the candles on the tick chart have changed a little. Is this something you experience with a live account, or is this just a product of being on demo? I can show examples if needed. I have been using the tick chart to make entries on my MT4. Just want to know what I am getting into, before I spend the money to use Ninja Trader on a live account.
Damn The Torpedoes, Full Speed Ahead!
  • #12,219
  • Jan 22, 2015 9:33pm Jan 22, 2015 9:33pm
I tried posting this a little earlier, but deleted because I had the charts messed up.

This is a trade I took today. In the big picture, shown below, I saw an inverse head and shoulders pattern completing at an area of prior structure confluent with the completion of an ideal harmonic (if somewhat sloppy) ABCD. This is the hourly chart scrunched up.

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In the closeup, I saw a decrease in momentum and projection between the two most recent upswings, and on a bar by bar level, rejection of the line of resistance I have drawn in gold. My entry, target and stops are marked on the chart. When price reached the .382 of the most relevant upswing, I brought my stops to break even. When it was nearing the .786, I happened to be watching the candle and saw a lot of struggle. I thought, "Hey, maybe this thing is about to retrace on me", so I moved my stop to just above the .618, where I was taken out as price continued to fluctuate rapidly. Now I see it is on it's way to my initial target, so rather wish I had stayed in, but am still glad for the +43 pips. Perhaps I should have given it more room? I think proper stop placement is my weakest point.

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  • #12,220
  • Jan 22, 2015 9:56pm Jan 22, 2015 9:56pm
Quoting DizzleFX
Just missed this entry. Going to wait on an opportunity to enter. The initial drive down started out with some good momentum so my expectation is a shallow correction to the green horizontal line. Then look for an opportunity to enter! {image}
Price closed above my area of expectation, and is really just moving sideways now. Moving on!
Damn The Torpedoes, Full Speed Ahead!
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